EASTERN PLATINUM LIMITED - Eastern Platinum Limited Reports Annual Results For 2018

Eastern Platinum Limited Reports Annual Results For 2018

EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768555096
Share Code JSE: EPS ISIN: CA2768555096
(“Eastplats” or the “Company”)

March 27, 2019
Trading Symbol: ELR (TSX); EPS (JSE)

NEWS RELEASE

EASTERN PLATINUM LIMITED REPORTS ANNUAL RESULTS FOR 2018

March 27, 2019, Vancouver, British Columbia – Eastern Platinum Limited (“Eastplats” or the “Company”) is pleased
to report that it has filed its Audited Consolidated Financial Statements for the years ending December 31, 2018 and
2017 and the corresponding, Management’s Discussion and Analysis and Annual Information Form. Below is a
summary of the Company’s financial results and highlights for the year ended December 31, 2018 (all amounts in
USD):

    •   Capitalized $64.0 million in respect to the Retreatment Project (as defined below) during 2018;

    •   The Retreatment Project began producing revenue in late December 2018 – which is the first reported revenue
        of the Company since 2013;

    •   Cash and short-term investments of $5.6 million and net working capital (excluding non-cash deferred
        revenue) of $5.0 million as at December 31, 2018 available for 2019;

    •   Cash inflow of $7.1 million during 2018 – upfront payment and construction loan from Union Goal
        (as defined below) in accordance to the Framework Agreement (as defined below);

    •   Cash flows used during the year were $2.8 million compared with $7.8 million in 2017, a continued
        improvement since 2016;

    •   Net loss to equity shareholders of $21.8 million (loss of $0.24 per share) compared with $7.4 million
        (loss of $0.08 per share) in 2017 – the increase resulting from impairment (discussed below) and increased
        foreign exchange loss; and

    •   Impairment of the CRM (as defined below) underground property of $15.5 million based on the net present
        value of the updated financial model using updated costs, recoveries and long-term consensus metal prices
        at December 31, 2018.

Operations of the Retreatment Project

As previously disclosed, on March 1, 2018, the Company entered into an agreement (the “Framework Agreement”)
with Union Goal Offshore Solution Limited (“Union Goal”) relating to the construction, re-mining and processing of
the tailing resource and offtake of chrome concentrate from Barplats Mines (Pty) Limited tailings facility
(the “Retreatment Project”) located at the Company’s Crocodile River Mine in South Africa (“CRM”).

Commissioning occurred in December 2018 and shortly thereafter operational ramp-up began with the Company
delivering feed from the re-mining of the tailings to the chrome plant to produce chrome concentrate.

A summary of production during the initial operation in late December 2018 to the end of February 2019:

Average grade Cr concentrate          Tons of Cr concentrate

38.6%                                 46,786

The Company is focused on ramping-up throughput of tailings material. The Company has estimated its ramp-up to
near full capacity during Q2 2019. The Retreatment Project at full capacity is forecasted to generate mine operating
cashflows from the offtake of chrome concentrate of approximately $1 million per month for approximately 5 years.

During Q2 2019 Eastplats’ will begin to test and assess the platinum group metals (“PGM”) recovery opportunity
available as part of the Retreatment Project.

Outlook

In 2018, the Company focused on the construction of the Retreatment Project which is now generating revenue for
the Company. As discussed above further developing this revenue generating operation is key for the Company.

The Company’s other new opportunities were placed on hold in 2018 as Eastplats resources were allocated to achieve
revenue-producing operations at the Retreatment Project. The Company’s targets for 2019 include:

     • Retreatment Project ramp-up to full production in Q2 2019;
     • Assessment and decision regarding the PGM recoverability opportunities in relation to the tailings resource;
     • Finalize the Retreatment Project Chrome Circuit purchase in accordance with the option under the
       Framework Agreement;
     • Assessment and decision regarding Mareesburg project; and
     • Assessment and discussions regarding the CRM Zandfontein underground operations;

The Company is actively looking at opportunities for its other assets and properties and exploring options to utilize or
monetize these assets.

Diana Hu, CEO of Eastern Platinum commented, “Eastplats has made tremendous strides during 2018 to start the
Retreatment Project operations, generate revenue and overall to revitalize the Company. Eastplats is targeting the
creation of shareholder value and our 2019 goals will further this objective. The Eastplats team is driven to achieve
further successes in 2019.”

The Company has filed the following documents, under the Company’s profile on SEDAR at www.sedar.com:

     • Audited consolidated financial statements for the year ended December 31, 2018 and 2017;
     • Management’s discussion and analysis for the year ended December 31, 2018 and 2017; and
     • Annual Information Form at December 31, 2018.

For further information, please contact:

EASTERN PLATINUM LIMITED
Rowland Wallenius, Chief Financial Officer
rwallenius@eastplats.com (email)
(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include,
without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are
statements that are not historical facts and are generally, but not always, identified by the words “will”, “plan”, “intends”, “may”,
“will”, “could”, “expects”, “anticipates” and similar expressions. Further disclosure of the risks and uncertainties facing the
Company and other forward-looking statements are discussed in the Company’s most recent Annual Information Form available
under the Company’s profile on www.sedar.com.

In particular, this press release contains forward-looking statements pertaining to: forecast of operational activity of the Retreatment
Project and the Company’s ability to achieve full-operational capacity at the Retreatment Project during Q2 2019 or at all;
forecasted cashflows of the Retreatment Project; the Company’s ability to test and assess PGM recovery opportunities in connection
with the Retreatment Project; the Company’s possible decision regarding the option exercise in relation to the Framework
Agreement; or the Company’s ability to assess and make decisions with respect to its other assets. These forward-looking
statements are based on assumptions made by and information currently available to the Company. Although management
considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By
their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue
reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives,
expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to,
unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities
of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions,
currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the
“Cautionary Statement on Forward-Looking Information” section contained in the Company’s most recent Management’s
Discussion and Analysis available under the Company’s profile on www.sedar.com. The forward-looking statements in this press
release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any
intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the
information contained herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

JSE Sponsor
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